Laurus Labs Ltd.Strong Growth with 60% Margin Guidance

Laurus Labs delivered robust Q3 FY26 performance with revenues reaching ₹1,778 crores, up 7.5% quarter-on-quarter and 26% year-on-year, while nine-month revenues crossed the ₹5,000 crore milestone with 30% growth.

The company reported exceptional profitability with nine-month profit after tax surging 388% to ₹610 crores, driven by significant margin expansion. Gross margins strengthened to 60.9% in Q3, with management confidently guiding for sustained 60% gross margins through Q4 FY26 and FY27. The generic division demonstrated strong momentum with 37% year-on-year growth to ₹1,327 crores, while CDMO achieved over 50% nine-month growth with majority FY27 revenues expected from commercial supplies.

Management announced aggressive expansion plans with ₹1,000 crore plus capital expenditure planned for both FY26 and FY27, focusing on peptides, antibody drug conjugates, gene therapy labs, and bio fermentation capacity. The company operationalized its ADC and gene therapy development labs this quarter, with commercial peptide facility qualification expected during calendar 2026, positioning Laurus for sustained long-term growth.